The EU-US Trade and Technology Council [Policy Podcast]

Summary

The podcast explores the EU-U.S. Trade and Technology Council, highlighting its role in strengthening transatlantic trade, technology, and economic relations. The council aims to tackle key issues such as supply chain resilience, tech regulation, and global standards, with a focus on enhancing bilateral trade and investment. It also reflects on the challenges posed by past tensions, like the Trump-era tariffs, and the new opportunities under President Biden's administration. Stakeholders are optimistic about the council's potential to set global standards and address shared concerns, especially in the digital and tech sectors.

Takeaways

• 🌍 The EU and US share the largest bilateral economic relationship globally, representing 780 million people with strong democratic values.
• 💼 US investment in the EU is three times larger than its total investments in all of Asia, while EU investment in the US is eight times what it invests in India and China.
• 📊 The digital trade relationship is particularly significant, with the US being the largest supplier of digitally enabled services to the EU, worth €167 billion in 2019.
• ⚖️ Tensions between the EU and US increased during Trump's administration due to tariffs on steel and aluminum, the Airbus-Boeing dispute, digital taxation, and data privacy issues.
• 🤝 President Biden's administration has opened a new, collaborative chapter in EU-US relations, resolving disputes and working on privacy and big tech regulations.
• 📅 The EU-US Trade and Technology Council (TTC) was launched in June to coordinate approaches on trade, economic, and technology issues, strengthening bilateral relations.
• 🔧 The TTC will work on 10 key areas including common standards, resilient supply chains, tech regulation, investment screening, and export controls.
• 🔑 Both the EU and US aim to reduce vulnerabilities in global supply chains, especially in areas like raw materials and semiconductors, critical for the digital economy.
• 💡 Stakeholders such as the American Chamber of Commerce support the TTC, seeing it as a chance to address emerging issues like AI, cybersecurity, and supply chain resilience.
• 🔮 While the TTC holds potential, differences in digital market regulations remain a challenge, and its success will depend on the ability to form unified global standards.

Q & A

What is the EU-U.S. Trade and Technology Council (TTC)?

The EU-U.S. Trade and Technology Council (TTC) is a forum established to coordinate approaches between the EU and U.S. on key global trade, economic, and technology issues, aiming to strengthen their transatlantic relationship based on shared democratic values.

Why was the TTC established?

The TTC was established to address challenges in trade and technology, enhance bilateral trade and investment, develop common standards, and ensure resilience in supply chains. It was also created to rebuild strained relations after the Trump administration and align on global digital standards.

What are the main goals of the TTC?

The TTC’s main goals include expanding bilateral trade and investment, avoiding new technical barriers, cooperating on technology policies, developing compatible international standards, boosting innovation, and strengthening industrial leadership between the EU and U.S.

How has the EU-U.S. trade relationship evolved over time?

The EU and U.S. have traditionally had a strong economic relationship, with the U.S. investing more in the EU than in Asia and vice versa. However, the relationship was strained under President Trump due to tariffs, disputes over digital taxes, and privacy issues. With President Biden, collaboration has improved, and efforts to resolve disputes have been made.

How will the TTC function in practice?

The TTC will operate through high-level political guidance and 10 working groups comprising experts from both the EU and U.S. administrations. These groups will focus on issues such as standards, supply chains, tech regulation, investment screening, and export controls.

Why are supply chains a key focus area for the TTC?

Supply chains are crucial for economic recovery post-COVID-19, as the pandemic exposed Europe’s vulnerabilities and dependency on strategic resources, especially from China. The TTC aims to build more resilient supply chains, particularly for critical technologies like semiconductors.

What were some of the key challenges in EU-U.S. relations during the Trump administration?

During the Trump administration, EU-U.S. relations were strained due to tariffs on European steel and aluminum, a long-running dispute over Airbus and Boeing, disagreements over digital taxation, and personal data transfer mechanisms.

What is the significance of semiconductors in the EU-U.S. discussions?

Semiconductors are critical components in almost all electronic devices, and both the EU and U.S. recognize the need to secure supply chains for these technologies to reduce vulnerabilities and ensure the resilience of their digital economies.

How has the TTC been received by stakeholders?

The TTC has been widely welcomed by stakeholders and the think tank community as a positive step toward deepening cooperation between the EU and U.S. on strategic issues like artificial intelligence, cybersecurity, and supply chain resilience.

What are the potential challenges the TTC might face in achieving its goals?

While there is a strong will to cooperate, there are still challenges, particularly in how the EU and U.S. regulate digital markets. Different approaches to regulation may pose obstacles to creating an ambitious joint policy that can influence global standards.